Partnership

Discussion in 'Lawn Mowing' started by Kut Kreator, Apr 14, 2004.

  1. Kut Kreator

    Kut Kreator LawnSite Member
    Posts: 25

    Here's my question:
    I currently run my own lawn business with about 60 accounts, and I have one guy who works with me. Over the winter months a friend of mine ask me about combining our operations together, quite naturally the thought crossed my mind. But as time passed by I gave it no more thought, last week my friend had his enclosed trailer stolen along with all of his equipment. He called me with the devastating news, so as a good friend I felt bad for him, so I told him that I could help him out with his accounts(25) until he gets back on his feet. So he ask me again about combining our businesses, and this was his bright idea, at the end of the week we can pay ourselves a salary and then pay our help, and put the rest in an account for the business. I suggested that you give me all of your accounts and work with me and I will pay you 150.00 or better a day. Right now I'm in a dilema can anyone help me out?
     
  2. shorty7616

    shorty7616 LawnSite Member
    Posts: 230

    I did the same thing a few years ago. I had about 20 accounts and a friend of mine had a bout 20 also. We decided to combine Ops. since we were in college and looking for help and $$.

    Well our friendship was over as was our partnership. We had to do twice as much to earn the same amount. I couldn't count on him. Complete nightmare.

    I can continue on in more detail, but in short. SAY NO!
     
  3. Mike Fronczak

    Mike Fronczak LawnSite Senior Member
    Posts: 301

    Stick with your idea. Pay him as employee or better yet say no.
     
  4. pcnservices

    pcnservices LawnSite Senior Member
    Posts: 614

    I would'nt even keep him as an employee as he would still act an operate as if he is the owner of this business. And this is going to create problems for you. He is obviously trying to get rid of his accounts for some reason.
    Buy him out. Pay him a reasonable and fair price for his accounts and give him the golden handshake.
    Good Luck
    PC
     
  5. fga

    fga LawnSite Silver Member
    Posts: 2,449

    I've been in a partnership decision for a while now, even have a thread somewhere on here. What I've gotten is DON'T DO IT. Even friends in other businesses can't make a partnership last. Actually, I've never heard of a successful partnership in a trade like this.
    I decided for it to work, it could never be 50/50. There has to be one guy that has to over rule the other. Even if they split the costs and profits 50/50, the overall decision making can never be. That is possible for some people, but for most, including myself, its not. One guy is always going to feel like he's doing more then the other.
    I was always stumped on how you can keep your record books the same continually. if one guy has the book responsibilty, then the other guy doesn't see the hours you're putting in at night while he's watching the Sopranos. Too stressful for me, I'm working on getting a foreman instead.
     
  6. meathead1134

    meathead1134 LawnSite Senior Member
    Posts: 637

    :blob3:

    If anybody has take a small business class the first rule is that partnerships don't work!! If you mix a friend, thats asking for more trouble. Sure it sounds good in the beginning but in the long run it just dosen't work. Look in your local phone book and see how many partnerships you see, not many. My best friend wanted to get into the landscaping business with me and I politely said no. But I promised him If I need help I'd ask him. Plus he has landed me a few customers. just my .02$

    Ken
     
  7. rookiemower

    rookiemower LawnSite Senior Member
    Posts: 766

    DONT GET INVOLVED IN PARTNERSHIPS they are trouble my friend asked me last year if i wanted to go partners i said NO. he doesnt even own equipment he borrows it from another friend and plus he is a scam artist with low paying accounts:rolleyes:
     
  8. EastProLawn

    EastProLawn LawnSite Bronze Member
    Posts: 1,110

    Stay in business for yourself, partnerships with friends & family very seldom workout. Someone always feels like they are pulling most of the weight and then bitterness sets in and things get ugly real quick and all friendships are forgotten & all family ties are severed, you get the picture.
     
  9. greenback

    greenback LawnSite Member
    from L.I.
    Posts: 175

    if he is your real friend then do it, but if you just know him through the business or someone else i would say no. i am in business with my friend but i have been friends with him for 10 years. when we hang out we do not even talk about work, when we work then we work. a real friendship should be able to brush all that work sh!t off when the day is done.thats just the way i think but it seems like most of you do not.
     
  10. The C Man

    The C Man LawnSite Senior Member
    from Ohio
    Posts: 527

    I don't see how it would benefit you. You have 60 accounts & all your equipment. Even if he had 60 accounts as well, he has no equipment. Even if he didn't have his stolen, you'd double the number of accounts, but since you'd split the money 50/50 you'd be back where you started as a solo.

    From everything I've read on here and given thought to, this is one business where your profits are maximized by staying solo or having people working under you as opposed to going into a partnership. An exception might be a married couple. Hypothetically, you double the number of accounts, double the $$$, but it all comes back to one family.
     

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